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CASE DESCRIPTION The primary subject matter of this case is continuous manufacturing and how it relates to the production of generic drugs Students in accounting, management, and supply chain programs will benefit from the case The case is appropriate for senior-level undergraduate courses and for first-year graduate students This case can be taught within three hours of classroom time Students will need two to three hours of outside preparation, depending upon their familiarity with supply chain issues and batch and continuous manufacturing CASE SYNOPSIS Over the past decade, as brand-name drug prices have soared, generic drug prices have steadily decreased relative to the consumer price index Manufacturers have little incentive to produce generic drugs at such low profit margins With few manufacturers producing a given drug, there is a significant risk of shortages, and the supply chain is vulnerable to external events The recent COVID-19 pandemic demonstrates these problems with alarming clarity In addition to shortages of ventilators and personal protective equipment, the Food and Drug Administration (FDA) has reported shortages of key antibiotics and ventilator-associated drugs (FDA) Generic drugs make up 90% of all prescriptions in the United States (National Conference of State Legislators, 2019) Thus, problems arising from the pricing and supply of generic drugs have the potential to affect millions of patients Most pharmaceuticals are produced using batch manufacturing (Myerson et al , 2014), in which inputs undergo a series of steps that convert them into a final product An alternative production system, continuous manufacturing, can alleviate problems associated with batch production and has the potential to mitigate generic drug shortages This case explores the use of continuous manufacturing using fictitious company Jazzy Pharmaceuticals and its experience with its drug Premier
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